Day Two Data Reveals Performance of Hong Kong’s Bitcoin ETFs: An In-Depth Analysis (BTC)

  • Hong Kong’s Bitcoin exchange-traded funds (ETFs) experienced a significant drop in Bitcoin inflows on their second trading day.
  • The ETFs, managed by China Asset Management (ChinaAMC), Harvest, Bosera, and HashKey, saw inflows of 174.73 BTC ($10.3 million), compared to 3,910 BTC ($240 million) on the first trading day.
  • Despite the drop, trading volume remained steady at over $9.7 million on both days, according to data from SoSoValue.

Hong Kong’s Bitcoin ETFs see a sharp drop in inflows on their second trading day, with trading volume remaining steady despite the decline.

Significant Drop in Bitcoin Inflows for Hong Kong’s Spot ETFs

On their second trading day, Hong Kong’s three spot Bitcoin ETFs saw a significant drop in Bitcoin inflows. Managed by China Asset Management (ChinaAMC), Harvest, Bosera, and HashKey, the ETFs saw inflows of 174.73 BTC ($10.3 million), a stark contrast to the 3,910 BTC ($240 million) inflow on the first trading day.

Steady Trading Volume Despite Drop in Inflows

According to data from SoSoValue, despite the drop in inflows, the trading volume remained steady at over $9.7 million on both days. SoSoValue explained that the purchase of physical Bitcoin does not create a dollar-denominated cash inflow for the purchased ETF shares. Therefore, these are not included in the daily net inflow statistics. Instead, the firm uses a BTC inflow metric that measures the actual amount of Bitcoin entering or exiting all ETFs on a specific trading day.

Bitcoin ETFs Hold Approximately 4,000 BTC

As of Thursday, the ETFs held approximately 4,000 BTC, and the total net assets showed a slight decrease from $247.7 million on the first day to $235.7 million. May 1 was a public holiday in Hong Kong, and the markets were closed. Among the three spot Bitcoin products, ChinaAMC’s Bitcoin ETF had the largest net assets of approximately $115.6 million. Harvest’s ETF had about $62.4 million, and Bosera HashKey Bitcoin ETF had about $57.7 million.

Contrasting Trends in the US Market

In contrast to the Hong Kong market, spot Bitcoin ETFs in the US experienced a net outflow of $34.4 million today, following record-level outflows of $563.7 million the previous day.

Conclusion

The significant drop in Bitcoin inflows for Hong Kong’s spot ETFs on their second trading day is noteworthy. However, the steady trading volume despite the drop indicates a sustained interest in these investment products. The contrasting trends in the US market, with spot Bitcoin ETFs experiencing net outflows, highlight the dynamic nature of the global cryptocurrency market.

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